How is the flooding in Thailand and the resulting shortages affecting the top two players in the hard-drive industry? Now that Seagate and Western Digital have both released their financial results for the holiday quarter, we can do some comparing and contrasting. Here are the Seagate numbers:
|Revenue||$2.7 billion||$2.8 billion||$3.2 billion|
|Net income||$150 million||$140 million||$563 million|
|Shipments||49 million||51 million||47 million|
...and here's how Western Digital fared. (In case you're wondering, WD's last fiscal quarter ended on December 30, just like Seagate's):
|Revenue||$2.5 billion||$2.7 billion||$2.0 billion|
|Net income||$225 million||$239 million||$145 million|
|Shipments||52 million||58 million||29 million|
Clearly, Seagate had the better quarter of the two. Not only did it see profits and revenue surge compared to the same quarter a year back, but its hard-drive shipments stayed mostly flat. WD, meanwhile, saw revenue, profits, and shipments fall quite dramatically. Only its gross margin rose—but not enough to make up for the flooding-induced shortages.
According to Dow Jones, Seagate did so well in comparison because its facilities "remained intact" despite the flooding in Thailand. WD wasn't so lucky.